U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

49–010 

" ! SENATE 113TH CONGRESS

2d Session 

REPORT

2014

113–319 

Calendar No. 617 

CONCRETE MASONRY PRODUCTS RESEARCH, EDUCATION, AND PROMOTION 

ACT OF 2013 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 429 

DECEMBER 12, 2014.—Ordered to be printed 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED THIRTEENTH CONGRESS

SECOND SESSION

JOHN D. ROCKEFELLER IV, West Virginia, Chairman 

BARBARA BOXER, California JOHN THUNE, South Dakota 

BILL NELSON, Florida ROGER F. WICKER, Mississippi 

MARIA CANTWELL, Washington ROY BLUNT, Missouri 

MARK PRYOR, Arkansas MARCO RUBIO, Florida 

CLAIRE MCCASKILL, Missouri KELLY AYOTTE, New Hampshire 

AMY KLOBUCHAR, Minnesota DEAN HELLER, Nevada 

MARK BEGICH, Alaska DANIEL COATS, Indiana 

RICHARD BLUMENTHAL, Connecticut TIM SCOTT, South Carolina 

BRIAN SCHATZ, Hawaii TED CRUZ, Texas 

ED MARKEY, Massachusetts DEB FISCHER, Nebraska 

CORY BOOKER, New Jersey RON JOHNSON, Wisconsin 

JOHN WALSH, Montana 

ELLEN DONESKI, Staff Director 

JOHN WILLIAMS, General Counsel 

DAVID SCHWIETERT, Republican Staff Director 

NICK ROSSI, Republican Deputy Staff Director 

REBECCA SEIDEL, Republican General Counsel 

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Calendar No. 617 

113TH CONGRESS REPORT " ! SENATE 2d Session 113–319 

CONCRETE MASONRY PRODUCTS RESEARCH, EDUCATION, 

AND PROMOTION ACT OF 2013 

DECEMBER 12, 2014.—Ordered to be printed 

Mr. ROCKEFELLER, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 429] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 429) to enable concrete masonry 

products manufacturers to establish, finance, and carry out a coordinated program of research, education, and promotion to improve, maintain, and develop markets for concrete masonry products, having considered the same, reports favorably thereon with 

an amendment (in the nature of a substitute) and recommends that 

the bill (as amended) do pass. 

PURPOSE OF THE BILL

The purpose of S. 429, the Concrete Masonry Products Research, 

Education, and Promotion Act of 2013, is to enable concrete masonry products manufacturers to establish, finance, and carry out 

a ‘‘check-off’’ program—a coordinated program of research, education, and promotion to improve, maintain, and develop markets— 

for concrete masonry products. 

BACKGROUND AND NEEDS

Check-off programs are officially known as commodity research 

and promotion programs. Designed to enable cooperation among generic commodity products—such as beef, milk, raisins, peanuts, 

and certain heating fuel products—they are established at the request of the affected industry. Existing check-off programs establish mandatory fees on industry that fund coordinated advertising 

campaigns, market research, product development, and consumer 

education. The Government oversees the programs, which are managed by a board comprised of industry members. Unlike typical private-sector promotion programs, the goal of check-off programs is 

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1Pub. L. 104—127. 

2 U.S. Department of Agriculture, Federal Research and Promotion Programs (Aug. 27, 2013), 

(online at www.ams.usda.gov/ AMSv1.0/ams.fetchTemplateData.do?template=TemplateB&navID 

=ResearchandPromotion&leftNav=ResearchandPromotion&page=ResearchandPromotion&acct= 

AMSPW). 3 U.S. Department of Agriculture, Industry Insight: Checkoff Programs Empower Business 

(Sept. 21, 2011) (online at http://blogs.usda.gov/2011/09/21/industry-insight-checkoff-programsempower-business). 4Pub. L. 104—284. 

5Pub. L. 106—469. 

6Pub. L. 113—79. 

to promote a generic commodity to increase sales, consumer awareness, and demand. 

The vast majority of check-off programs in the United States are 

agricultural. Under the Commodity Promotion, Research, and Information Act of 1996,1 the U.S. Department of Agriculture (USDA) 

is authorized to oversee all check-off programs for the agricultural 

industry and to support the creation of new check-off programs. 

Well-known check-off programs include advertising campaigns for 

milk and beef, and the USDA currently oversees at least 20 checkoff programs across the agricultural industry, including products 

such as cotton, eggs, mangos, popcorn, pork, potatoes, processed 

raspberries, softwood lumber, sorghum, soybeans, and watermelons.2

The existing agriculture commodity check-off programs are overseen by the USDA’s Agricultural Marketing Service. Each check-off 

is governed by a board, with members appointed by the Secretary 

of Agriculture based on the industry’s nominations. Despite Federal 

administration of these programs, the check-off programs are fully 

funded and operated by the industries. According to the USDA, 

every $1 spent in a check-off program yields an investment return 

as high as $18.3

In addition to the USDA administered programs, there are also 

two check-off programs for heating fuel products. The first involves 

propane and was authorized by the Propane Education and Research Act of 1996.4 The second covers heating oil, was initially authorized by the National Oilheat Research Alliance Act of 2000,5

and was recently reauthorized by the 2014 Agricultural Act.6 Both 

programs are overseen by the Department of Energy. 

The intent of S. 429 is to establish a similar check-off program 

for the concrete masonry industry. 

SUMMARY OF PROVISIONS

S. 429 would build off of the long-established Federal check-off 

program for agricultural goods and establish a similar program for 

concrete masonry products. The bill would direct the Secretary of 

Commerce (Secretary) to create a Concrete Masonry Products 

Board (Board). The Board’s mission would be to develop, finance, 

and carry out a collective research, education, and promotion campaign to maintain, strengthen, and expand the marketplace for 

concrete masonry products. These activities would be financed by 

mandatory fees assessed on concrete masonry manufacturers collected by the Board. S. 429 would further authorize the Secretary 

to issue other orders related to concrete masonry, subject to simple 

majority votes in referenda, and would provide the Secretary with 

numerous tools to implement and enforce the Act. 

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LEGISLATIVE HISTORY

Senator Bill Nelson introduced S. 429 on February 28, 2013, with 

Senators Blunt, Manchin, and McCaskill as original cosponsors. 

The bill has 19 additional cosponsors: Senators Coons, Hagan, 

Burr, Chambliss, Klobuchar, Crapo, Moran, Casey, Baldwin, Levin, 

Cardin, Stabenow, Roberts, Durbin, Cantwell, Murray, Warner, 

Booker, and Menendez. 

On April 9, 2014, in an open Executive Session, the Committee 

considered the bill and reported S. 429, as amended, favorably by 

voice vote. The Committee adopted a substitute amendment from 

Senator Nelson. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office: 

S. 429—Concrete Masonry Products Research, Education, and Promotion Act of 2013 

Summary: S. 429 would establish the Concrete Masonry Products 

Board (Board), upon approval of a referendum by producers of masonry products made from concrete (CMP). The Board would develop research and education programs as well as efforts to promote CMP in domestic and foreign markets. Funding for those activities would be derived from assessments on CMP manufacturers 

based on the number of masonry units sold each year. The bill 

would direct the Secretary of Commerce to organize and hold the 

referendum; the agency’s costs would be reimbursed by the Board 

from initial collections of assessments. 

CBO estimates that enacting S. 429 would increase direct spending by $141 million and increase net revenues by $108 million over 

the 2015–2024 period, yielding a net increase in the deficit of $33 

million over the 10-year period. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues. CBO estimates that implementing S. 429 would have an insignificant effect on discretionary spending over the 2015–2019 period. 

S. 429 contains no intergovernmental mandates as defined in the 

Unfunded Mandates Reform Act (UMRA) and would not affect the 

budgets of state, local, or tribal governments. 

S. 429 would impose private-sector mandates on manufacturers 

of CMP. Based on information from industry experts, CBO estimates that the annual cost of the mandates would fall well below 

the threshold established in UMRA for private-sector mandates 

($152 million in 2014, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary effects of S. 429 are shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

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By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015– 

2019 

2015– 

2024 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority ...................... 4 14 15 15 15 16 16 16 17 17 63 145 

Estimated Outlays ..................................... 2 12 16 15 15 16 16 16 17 17 59 141 

CHANGES IN REVENUES 

Estimated Revenues .................................. 3 10 11 11 11 12 12 12 13 13 46 108 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES 

Impact on Deficit ....................................... ¥1 2 5 4 4 4 4 4 4 4 13 33 

Notes: Components may not sum to totals because of rounding. 

CBO estimates that implementing S. 429 would have an insignificant effect on discretionary spending. 

Basis of estimate: CBO believes the Board established by S. 429 

should be considered governmental in nature and all of its activities should be included in the federal budget. While formation of 

the Board would be voluntary, once it was created, the requirement 

to pay assessments would be compulsory, enforced by the federal 

government’s sovereign authority. 

Based on information from industry experts, CBO assumes that 

the referendum would be approved by the industry and that the 

Board and supporting staff would be appointed during 2015. We expect that collections of assessments would begin before the end of 

fiscal year 2015; the bill would require quarterly remittance of 

amounts due. 

Revenues 

S. 429 would authorize the Board to levy an assessment of one 

cent on each concrete block product sold by all CMP manufacturers 

in the United States. Based on information from industry experts 

and historical sales information, CBO expects about 1.4 billion concrete blocks and pavers will be sold in 2015 with similar sales in 

subsequent years, yielding, on average, estimated collections of $14 

million per year. Those amounts would be recorded in the budget 

as revenues, because payment of the assessments would be compulsory, enforced by the federal government’s sovereign authority. 

CBO estimates that enacting S. 429 would increase gross revenues 

by $145 million over the 2015–2024 period. 

Because excise taxes and other indirect business taxes (such as 

assessments by the Board) reduce the base of income and payroll 

taxes, higher amounts of those indirect business taxes would lead 

to reductions in revenues from income and payroll taxes. As a result, gross assessments would be partially offset by a loss of receipts of about 25 percent each year. Thus, CBO estimates that enacting S. 429 would increase net revenues by $108 million over the 

2015–2024 period. 

Direct spending 

S. 429 would authorize the Board to spend amounts collected, 

without further appropriation, on research and education efforts as 

well as programs to promote sales of CMP. The bill also would authorize the Board to borrow funds to cover the Board’s start-up expenses and to invest collections in interest-bearing securities, 

thereby generating additional funding for its activities. Expenditures of assessments and interest would be considered direct spending. Based on historical patterns for similar activities, CBO estimstockstill on DSK4VPTVN1PROD with HEARINGS

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mates that expenditures by the proposed Board would total about 

$141 million over the 2015–2024 period. 

Spending subject to appropriation 

S. 429 would direct the Secretary of Commerce to develop an 

order to establish the Board and set out its authorities, and to conduct a referendum among eligible CMP manufacturers to approve 

the order. After passage of the referendum, the Secretary would be 

responsible for approving the Board’s programs and budgets each 

year. 

CBO estimates that implementing those provisions would cost 

less than $500,000 over the 2015–2019 period, assuming the availability of appropriated funds. Under the bill, the Board would be 

required to reimburse the Secretary for all expenses incurred to implement and oversee the order; CBO expects that those reimbursements would be recorded as offsets to discretionary spending by the 

Secretary. Therefore, CBO estimates that implementing S. 429 

would have a negligible net effect on spending subject to appropriation. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays and revenues that are subject to those pay-asyou-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 429, AS ORDERED REPORTED BY THE SENATE 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON APRIL 9, 2014 

By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014– 

2019 

2014– 

2024 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-You-Go Impact .... 0 ¥1 2 5 4 4 4 4 4 4 4 13 33 

Memorandum: 

Changes in Outlays ............... 0 2 12 16 15 15 16 16 16 17 17 59 141 

Changes in Revenues ............ 0 3 10 11 11 11 12 12 12 13 13 46 108 

Estimated impact on state, local, and tribal governments: S. 429 

contains no intergovernmental mandates as defined in UMRA and 

would not affect the budgets of state, local, or tribal governments. 

Estimated impact on the private sector: S. 429 would impose private-sector mandates on manufacturers of concrete masonry products, such as cinder blocks and concrete pavers. Those manufacturers would be required to pay to the Board an assessment of one 

cent per masonry unit sold. CBO estimates that the cost of this 

mandate would amount to about $14 million annually. The bill also 

would impose mandates on CMP manufacturers by requiring them 

to maintain records and submit information as required by the 

Board. Based on information from industry experts, the cost of 

complying with the recordkeeping requirements would be small. 

Consequently, CBO estimates that the aggregate cost of the private-sector mandates in the bill would fall well below the annual 

threshold established in UMRA ($152 million in 2014, adjusted annually for inflation). 

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Estimate prepared by: Federal costs: Susan Willie; Impact on 

state, local, and tribal governments: Melissa Merrell; Impact on the 

private sector: Marin Burnett. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

The legislation would apply to manufacturers of concrete masonry products. 

ECONOMIC IMPACT

The legislation is not expected to have an adverse economic impact on the Nation. 

PRIVACY

S. 429 would not have a negative impact on the personal privacy 

of individuals. 

PAPERWORK

S. 429 would require the Secretary to issue a proposed order and 

allow for public comment and review before its adoption to establish the Board. The Board would be required to submit for approval 

to the Secretary any contracts or agreements to carry out the 

Board’s mission, and the Board would be required to submit periodic audits and reviews to the Secretary. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides that no provisions 

contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Section 1 of the bill would establish the title of the bill as the 

‘‘Concrete Masonry Products Research, Education, and Promotion 

Act of 2013.’’ 

Section 2. Findings and declaration of policy 

Section 2 of the bill would establish various findings on the importance of the concrete masonry industry and would further state 

the bill’s purpose to establish a Federal program for concrete masonry. 

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Section 3. Definitions 

Section 3 of the bill would define numerous key terms in the bill, 

including ‘‘concrete masonry products,’’ ‘‘dry-cast concrete,’’ and 

‘‘machine cavity.’’ 

Section 4. Issuance of orders 

Section 4 of the bill would direct the Secretary to ‘‘issue orders 

under this Act applicable to manufacturers of concrete masonry 

products.’’ Only one such order may be in effect at any time, and 

it may be proposed by the Secretary or from ‘‘an existing national 

organization of concrete product manufacturers’’ or from persons affected by an order related to concrete masonry products. The Secretary would issue the order after a notice and comment period, 

subject to a referendum vote, the procedures of which are established in section 7 of the bill. 

Section 5. Required terms in orders 

Section 5 of the bill would lay out the procedures by which orders 

are issued and the provisions of such orders. This section would establish the Board with a membership of concrete masonry manufacturers representing all regions of the United States and appointed by the Secretary through a nomination process. This section would also establish the duties of the Board in carrying out 

‘‘a program of generic promotion, research, and information regarding concrete masonry products.’’ Such duties would include: • administering orders and collecting assessments, as well 

as setting rates of assessment (see section 6); • developing rules and bylaws; • establishing regional organizations and committees and 

working committees; • hiring employees; • borrowing funds; • carrying out research, education, and promotion programs 

and projects (paid for by the aforementioned assessments and, 

when appropriate, through negotiated contracts and agreements); • maintaining minutes, books, and records; and • investigating and reporting complaints to the Secretary, as 

well as recommending amendments to orders. 

This section would also establish limitations and conditions for 

expenses of the Board and payment of those expenses; require the 

Board to maintain books and records and to conduct periodic audits; and prohibit the Board from influencing legislation or government action, engaging in activities that pose a conflict of interest, 

and advertising false or misleading claims. 

Section 6. Assessments 

Section 6 of the bill would require concrete masonry manufacturers to pay an assessment to the Board, of which at least 50 percent 

of the proceedings (minus administrative expenses) would be required to be proportionally dedicated to research, education, and 

promotion plans and projects in support of five statutorily-established geographic regions of manufacturers. The Board would be allowed to invest the proceeds in government bonds, banks regulated 

by the Federal Reserve, or in instruments fully guaranteed by the 

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United States. The assessment rate on a manufacturer would start 

at $0.01 per concrete masonry unit sold and could not rise any 

higher than $0.05 per unit. A two-thirds majority of voting members of the Board would be required to change the assessment rate, 

and any rate increase or decrease would not be permitted to exceed 

$0.01 per unit. 

Section 7. Referenda 

Section 7 of the bill would establish a referendum process for any 

order issued under section 4. Within 60 days of the effective date 

of an order, the Secretary would be required to conduct a referendum among all manufacturers that pay assessments under section 6. Approval of an order would require a simple majority, and 

each manufacturer would be eligible for one vote for each machine 

cavity the manufacturer has operated within six months (as established in the definitions under section 2). The Secretary would establish the procedures for all referenda and would be required to 

conduct subsequent referenda at the request of the Board or five 

years after the effective date of an order (and periodically thereafter on a five-year basis). 

Section 8. Petition and review 

Section 8 of the bill would grant any person subject to an order 

the right to petition the Secretary requesting a modification or exemption or otherwise claiming that the order is not in accordance 

with the law. The Secretary would subsequently conduct an administrative hearing and rule on the petition, subject to judicial review 

in Federal district court. 

Section 9. Enforcement 

Section 9 of the bill would authorize the U.S. Attorney General 

to bring civil actions in Federal district court for violations of the 

Act and for violations of orders or regulations issued by the Secretary. This section would further authorize the Secretary, subsequent to notice and a hearing, to assess civil penalties (of no more 

than $5,000 per violation) and issue cease-and-desist orders. 

Section 10. Investigation and power to subpoena 

Section 10 of the bill would grant the Secretary the authority to 

conduct investigations in order to determine if the Act or any order 

is being violated. As part of this investigatory authority, the Secretary would be authorized to administer oaths and affirmations, 

subpoena witnesses, compel the attendance of witnesses, take evidence, and require production of records. The presiding officer of 

administrative hearings on petition reviews (under section 8) and 

on civil penalties or cease-and-desist orders (under section 9) would 

also have such authority. 

Section 11. Suspension or termination 

Section 11 of the bill would direct the Secretary to suspend or 

terminate an order or a provision of an order if the Secretary finds 

that it does not effectuate the purposes of the Act or was not approved by referendum conducted under section 7. 

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Section 12. Confidentiality 

Section 12 of the bill would establish that nothing under this Act 

would require the Board to disclose information or records under 

section 552 of title 5, United States Code (commonly known as the 

Freedom of Information Act). 

Section 13. Amendments to orders 

Section 13 of the bill would establish that all of the provisions 

of this Act, except for the petition and review provisions under section 8, would apply to amendments to orders issued by the Secretary. 

Section 14. Effect on other laws 

Section 14 of the bill would state that the Act does not preempt 

any other Federal or State law authorizing research, education, 

and promotion related to concrete masonry. 

Section 15. Regulations 

Section 15 of the bill would authorize the Secretary to issue regulations to carry out the provisions of the Act. 

Section 16. Limitation on expenditures for administrative expenses 

Section 16 of the bill would prohibit any appropriated funds to 

be used for the expenses or expenditures of the Board in administering an order. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee states that the bill as reported 

would make no change to existing law. 

Æ 

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